In a move designed to
strengthen its position in the US government-sponsored Medicare
health insurance market, Munich Re is to acquire Windsor Health
Group for $125m in cash.
Control of Windsor will lie
with Munich Health (MH) North America.
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Wolfgang Strassl, the Munich
Re board of management member responsible for MH, said: “As one of
the largest health insurance markets in the world, the US is very
important for MH. This supports MH’s strategy for sustainable
growth and value creation in the US Medicare market.”
Windsor operates Medicare
plans through its Windsor Health Plan subsidiary, which provides
managed health care services in the senior segment to about 75,000
members in Alabama, Arkansas, Mississippi, South Carolina and
Tennessee.
According to Munich Re, in
2010, Windsor expects to generate gross written premium income of
$420m and earnings of $31m before interest, taxes, depreciation and
amortisation.
The acquisition is the second
in the Medicare market made by the German insurer and reinsurer. In
2008 it acquired Sterling Life Insurance Company, a speciality
health insurer for seniors operating in all 50 US states. Windsor
and Sterling has some 125,000 members.
